The House approved legislation Tuesday by a 254-166 vote that could significantly delay the Labor Department's proposed fiduciary rule.
The measure has uncertain prospects in the Senate and has already garnered a veto threat from President Barack Obama. “It would derail important rule-makings underway,” the Office of Management and Budget said in a statement.
Sponsored by Rep. Ann Wagner, R-Mo., the Retail Investor Protection Act would prohibit the DOL from proposing a fiduciary rule until 60 days after the Securities and Exchange Commission adopts its own fiduciary standard. It also would require the SEC to first determine how retail investors are harmed by different standards for investment advisers and brokers.
“All we are saying to the DOL and the SEC is that this is an economy that is being crushed by the burden of regulation,” said House Financial Services Committee Chairman Jeb Hensarling, R-Texas, during floor debate.
“The bill holds the Labor Department hostage,” Rep. Maxine Waters, D-Calif., said during floor debate.